Progressive Taxation is punishing success

According to the National Taxpayers Union, the top 1% of federal income tax filers paid 36.89% and 40.42% of all federal income taxes in 2004 and 2007, respectively. That equates to a 9.6% increase in the percentage of taxes paid over the four year period.

Total tax collected increased by 44% from 2004 to 2007; however the top1% actual taxes paid increased by 54% in the same period. The top 25% paid nearly 87% of all federal income taxes in 2007, while the bottom 50% paid 2.89%.

For Tax Year 2007

Percentiles Ranked by AGI

AGI Threshold on Percentiles

Percentage of Federal Personal Income Tax Paid

Top 1%

$410,096

40.42

Top 5%

$160,041

60.63

Top 10%

$113,018

71.22

Top 25%

$66,532

86.59

Top 50%

$32,879

97.11

Bottom 50%

<$32,879

2.89

Note: AGI is Adjusted Gross Income Source: Internal Revenue Service

For Tax Year 2004

Percentiles Ranked by AGI

AGI Threshold on Percentiles

Percentage of Federal Personal Income Tax Paid

Top 1%

$328,049

36.89

Top 5%

$137,056

57.13

Top 10%

$99,112

68.19

Top 25%

$60,041

84.86

Top 50%

$30,122

96.70

Bottom 50%

<$30,122

3.30

Note: AGI is Adjusted Gross Income Source: Internal Revenue Service

According to the Tax Foundation analysis of 2007 taxpayer data, the top 1% of federal income tax filers earned 22.8% of adjusted gross income but paid 40.42% of all federal income taxes. In 2007, there were a total of 141.1 million income tax returns filed across all filing statuses. Therefore, the top 1% includes 1.41 million federal income tax returns and the top 25% includes 35.27 million federal income tax returns.

According to the 2008 federal government budget (pg 21) the actual federal income taxes received by the federal government in 2007 was 1.169 trillion dollars. The top 1% paid $472.5 billion in federal income taxes. The top 25% paid $1.012 trillion in federal income taxes. The bottom 50% paid $33.84 billion in federal income taxes. Data in the chart below comes from the National Taxpayers Union, Tax Foundation data, and the 2008 federal government budget.

Federal Income Tax Collected (in Billions)

Percentiles Ranked by AGI

2004

2007

2007 # of income tax returns filed

Top 1%

298.4

472.5

1.41 million

Top 5%

462.2

584.5

7.1 million

Top 10%

568.7

832.6

14.1 million

Top 25%

686.5

1,012.2

35.27 million

Top 50%

784.2

1,135.2

70.535 million

Bottom 50%

24.8

33.8

70.535 million

Total Federal income Taxes

809

1,169

141.1 million

According to the National Taxpayers Union, the top 1% of federal income tax filers paid 36.89% and 40.42% of all federal income taxes in 2004 and 2007, respectively. That equates to a 9.6% increase in the percentage of taxes paid over the four year period.

Total tax collected increased by 44% from 2004 to 2007; however the top1% actual taxes paid increased by 54% in the same period. The top 25% paid nearly 87% of all federal income taxes in 2007, while the bottom 50% paid 2.89%.

For Tax Year 2007

Percentiles Ranked by AGI

AGI Threshold on Percentiles

Percentage of Federal Personal Income Tax Paid

Top 1%

$410,096

40.42

Top 5%

$160,041

60.63

Top 10%

$113,018

71.22

Top 25%

$66,532

86.59

Top 50%

$32,879

97.11

Bottom 50%

<$32,879

2.89

Note: AGI is Adjusted Gross Income Source: Internal Revenue Service

For Tax Year 2004

Percentiles Ranked by AGI

AGI Threshold on Percentiles

Percentage of Federal Personal Income Tax Paid

Top 1%

$328,049

36.89

Top 5%

$137,056

57.13

Top 10%

$99,112

68.19

Top 25%

$60,041

84.86

Top 50%

$30,122

96.70

Bottom 50%

<$30,122

3.30

Note: AGI is Adjusted Gross Income Source: Internal Revenue Service

According to the Tax Foundation analysis of 2007 taxpayer data, the top 1% of federal income tax filers earned 22.8% of adjusted gross income but paid 40.42% of all federal income taxes. In 2007, there were a total of 141.1 million income tax returns filed across all filing statuses. Therefore, the top 1% includes 1.41 million federal income tax returns and the top 25% includes 35.27 million federal income tax returns.

According to the 2008 federal government budget (pg 21) the actual federal income taxes received by the federal government in 2007 was 1.169 trillion dollars. The top 1% paid $472.5 billion in federal income taxes. The top 25% paid $1.012 trillion in federal income taxes. The bottom 50% paid $33.84 billion in federal income taxes. Data in the chart below comes from the National Taxpayers Union, Tax Foundation data, and the 2008 federal government budget.